Wall Street dropped on Thursday, weighed down by Apple as well as selling in Wells Fargo, Citigroup and other major banks as investors worried about the health of Deutsche Bank. Bobbi Rebell reports.
Wall St falls sharply on worries about banks
Financials a big drag on the major U.S. indexes. Wells Fargo CEO John Stumpf facing tough questions on his second trip to Capitol Hill this month over his bank’s sales scandal.
Tech and health stocks also weighing on the indexes with weakness in big names like Apple and Merck.
Kevin Mahn of Hennion and Walsh:
SOUNDBITE: KEVIN MAHN, PRESIDENT AND CHIEF INVESTMENT OFFICER, HENNION AND WALSH (ENGLISH) SAYING:
“Aside from what is happening on Capitol Hill today I think financials you know a large part of that has to do with interest rate policy and monetary policy. If in fact we are going to be in this extended period of lower rates for longer well then there are certain types of securities that pay an attractive yield that will remain attractive such as preferred securities and the majority of those tend to be financial companies. “
Deutsche Bank stock sinking. A number of hedge funds have cut their exposure to the bank.
Dunkin Brands group a bit higher. The donut chain will partner with Coca Cola on a line of cold coffee drinks.
U.S. economic growth was less sluggish than previously thought in the second quarter. GDP revised up to a 1.4 percent rate. Business investment rose for the first time in nearly a year
Turning to Europe, shares were relatively flat with weakness in drugmakers offsetting strength in energy shares.